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Bidding vs. paying

Bidding vs. paying

         

Boesman

6:22 am on Aug 22, 2005 (gmt 0)

10+ Year Member



If the reccomended CPC is 1$, and I see that I am No. 3. By increasing the CPC to 2$ I move up and become No. 1.

Question is this: Will I pay $2 for each click? If the reccomended is $1 and I set it to $20, will I pay $20 for each click?

AdWordsAdvisor

7:39 pm on Aug 22, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If the reccomended CPC is 1$, and I see that I am No. 3. By increasing the CPC to 2$ I move up and become No. 1.
Question is this: Will I pay $2 for each click? If the reccomended is $1 and I set it to $20, will I pay $20 for each click?

Boesman, the short answer is that "It depends" since your actual CPC is always relative to what you competitors are doing.

There are lots of past threads that go into this in varying amounts of detail. I'll try to get back later in the day and link to a few of these.

At the bottom line, I'd suggest against setting your Max CPC higher that you are truly comfortable paying. Doing this may result in a higher position, but it can also result in unpleasant surprises.

The same thing applies to one's daily budget, BTW. I truly do not advise setting either one's daily budget or Max CPC to an amount outside of one's comfort zone - except perhaps as a carefully monitored test.

AWA

AdWordsAdvisor

8:59 pm on Aug 22, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Why are results from doing searches on Google differ in their format on a daily basis?

For example, today when doing a search using our relevant keywords all the Sponsored Links are on the right hand side but yesterday when using exactly the same search terms the sponsored Links were on top with more sponsored links down the right hand side. I have also seen more sponsored links at the bottom using the same search terms!...

Stephen Tiller, ad position can vary, literally from moment to moment, depending on lots of factors - including the daily budget of advertisers, as Andrew Thomas pointed out.

Regarding the ads at the top, you'll see either zero, one, two, or three ads up there - and this too can vary from one moment to the next. Ads at the top are ones which have met an additional performance standard, focusing on relevance, as opposed to bid. If no ads appear at the top, it means that none have met the additional performance standard in the moment of your search.

Top sponsors (at the very top) are normally reserved for high paying ads, but if there are no high paying ads, or your click through rate is good you may also appear at the very top sponsored listing.

Actually this is not the case. Appearing at the top is dependent on relevance of the ad to our users (as judged by CTR), as opposed to bid. So just spending more will not cause ads to be 'promoted'.

(BTW, ads must also have been reviewed and approved in order to be promoted to the top spots.)

And finally, it is true that AdWords does a fair amount of testing regarding ad positioning. If you saw ads at the bottom, and you were looking on Google.com (as opposed to AOL for example) then you were undoubtedly seeing testing.

AWA